New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-04-29
UNION PACIFICs BRANCHES.
CHARLES FRANCIS ADAMs,s TESTIMONY.

RAILROAD COMMISSION.
The United States Pacific Railroad Commission, as
the body created by the last Congress tor the purpose
OF examining " the working aud fnspcial management
OF all railroads that have received aid from the Govern-
ment in bonds" has dcciaed +, call ITSELF resumed ITS
labUrs yesterday morning at the Astor Building Dy
the affairs of the Union Pacific as they
acre forth BY Charles Francis Adams, the pres-
dent OF the road. Mr. Adams as accompanied by
ARENAS II. Holmes, OF sthe counsel OF the COM
pany; Oliver ". Mink, it's controller; ex-Jud9e John
r. Dillon Gardiner N. Lane, and several other
officials OF the road. Nh. Adams gave his testimony
with vigor and promptness. Apparently ne was as
anxious to give tue Commissioners information on
most VI the points brought up as they were to obtain
it. He is a compacty built mau of medium height
and middle age, with a high prominent forehead
partly bald cearcut features rather deeply set dark
eyes and heavy gay mustaehe His earnest, ener
getic and somewhat nervous manner contrasted not
ably with the bluff. easygoing, Indifferent air Vi "r
Huntington. the witness OF the previous day.
Throughout the morning session and the greater part
OF the afternoon Commissioner +. Eilery Anderson
conducted the examination, which was connned mostly
to the history and purchase Of the Union Pacihc
numerous branches but short time before adjourn
ment Chairman Pattisou took hand and ASKED some
qneons about the main line and the relations OF the
company Nth the Government
Alter being sworn Mr.. Adams said that he
had been president of the Union Pacific since
juno IL, 1884 He had been Government
director in the company In 1878 AID 10 In 1883 he
became director OF the company and served rs tueh
for about sixteen months previous to his election 10
the presidency. Since his election he had carefully
studied the road and all its branches and considered
himself familiar with its earning car aeit, and general
condition All the branch roads had separate organ
izatous but he at the head OF each lie had not.
he said examined the affairs OF the company previous
TO his election except In incidental way, believing
that he had been placed in his position to manage the
consolidated road rather than 10 inquire into It's his
tory. He had heard vague rumors TO the enect that
Jay Gould, Sidney Dillon and Z. L. Ames had con-
Quoted themselvesswhe director in away that made
them amenabe to the corporation These he had in-
yestigated but Mr.. Anderson would not permit MN 10
state the results OF his inquiries.
Mr. Adams had looked into many other matters
connected with the various branch roads. the result
of which he stated In the of the examination
The branch roads had separate organizations because
the charter of the Union Pacific did not allow any
further consolidation. sWhy." sad the witness
don't understand that can build another mile OF
road. Our charter lie particularly narrow ana never
oneht to .have been passed" All the books he went
on are under one and are kept IN Boston
and Omaha The directors OF the branches are elected
by the Union Pacific except when the laws OF certain
States compel otherwise. Controller MINK, he SAID,
could tell whether there transcript OF the DOCKS
or not As himself he never looked into one OF the
books in bis lie, relying entirely ON the heads OF the
he construction of the Denver and South Park Rail
way Was taken up. 1t was 100 miles long and built
the witness stated, by Governor Eya1s OF colorado
who sold II to the Union Pacific, bot at what prlce-
whether S1OU $3.50 or 5000 share-ar. Adams
could not recolect Mr.. Gould represented the Union
pncihc in the trade and General Palmer the Denver
and Rio Grande which also trying to get the line
Mr. Swans PLAYED between the two and managed TO
get what afterward proved 10 De an *
booming but collapse followed IN aoout year anu
business ieli of onehalt Our principal pusl-
ness" the witness remarked. was to carry men 10
die holes in the ground called mines in those days.
He could not tell whether Mr. Gould and ar. Evans
had anything more than verbal agreement IN reSsu
A.. In a.
present the road does not pay operating expenses.
He thought however that the purchase OF 1t was but
an error OF Judgment Its future he did not think was
entirely hopeless though LIE admitted that all there
was to base his expectations on was the discovery OF
mines as there was no @ no Tn
only lien ainst this road was 81 10 oi0 npst
mortgage bonds held BY outsiders, and $oOooO
which the Westinghouse Brake Company held.
The Nevada Central load. which runs from Battle
Mou ntain to Austin, next taken up. About the
first thing Mr.. Adams did alter becoming president
convinced that there was no future tor IT. Phelpe,
Stokes Co. had provided the nohsy to build lbs
Clark now general manager OF the Missouri
Pacific Pacific lie paid xs Bridges, OF California,
exnonscs and was another example of The uncertain
character OF railroad property IN mlnnb country.
The witness said he did not think MI oould hsu
hand in this trade did he believe any one connected
with the Union Pacific got Penny out Of II. 1900,
The Central Branch OF the Union Pacific is operated
when he was large stakeholder in the Union Pacific,
in iurtherance to get all the roads west
OF the Missouri River INTO system. This road
~ meets the Union Pacific with Atchson. 1t runs
through fine agricultural country and pays well.
The lease OF it the Missouri Pacific was made by Mr.
Adams and rams Tor twenty-three years longer. Inc
payment for this road was made in cash. -
Speaking about the capital stock OF the Union Pac'hc
Mr. Adams testified that it had been increased but
twice At the time Of the consolidation OF the three
roads-the Kansas Pacific, Denver Pacific and old
Union Paci1s-that form the mann line the e eaPa was
10000 900 of stock was issued at par
All transactions, he remarked, were made in cash.
And you took vouchers, i suppose, for every
thing" said Mr.. Anderson With smile. -,
Yes for everything" rejoined the witness with
The Council Bluffs Street Railway, Mr.. Adams
thought was a good property-to sell. The Denver,
Marshall and Boulder Railroad is another short
branch which bought recently and paid tor at the
rate OF IS cents on the par value OF the bonds The
Leavenworth. Topeka and Southwestern branch was
purchased in 1882 IL is about City miles long rms
between the Union Pacific and AtchsOn and Santa
Fe and was bought jointly by these companies to
keep it out OF the hands OF another rival AT present
1t barely pays operating expenses. Inc hsnhattan,
Alma aud Burlingame is also owned jointly by these
roads. by which it was built in common 1t barely
paws liked charges. The Manhattan and Blue Valley
Is forty mile branch that bas proved an excellent
Investment, ha wing paid for itself many times over
and is indispensable The control OF the Qma AM
CLARK when he went over to that company from the
Union Pacific 1t was the subject OF much unfriendly
litigation but finally Mr.. Adamss company got
back all the money that il had invested IN the road
by its present owners. The stock and bonds OF the
St. Joseph branch were bought III open ny
Nessrs. Gould and Dillon in behalf OF the Union
Pacific. The line recognized and is now paying
we'll The Denver and South Pass is little spur that
Mr.. Adams. said he found lying around loose" and
picked up, rollingstock and all, tor $4,000.
Alter recess MIR. Adams said that the Utah and
Nc, ada which runs from Salt Lake City to Garfield
paws large dividends The Utah Central started
BY the MormOns and is still managed by Bishop
Bharpe, of the Mormon Church. Ii runs IRON Ogden
20 Salt Lake and thence to South Frisco TO aceommo,
date the Horn Silver mines. Until the Denver and
Rio (rsnde came there and ', lille the mines bed out
II paid WE'LL but now it scarcely yields enough TO
deiray operating expenses The company only owns
q controlling interest In IT, The Colorado Central,
had proved valuable property.
In reply to question Mr.. Adams said that the
four of the original directors OF the company who
are still in the board Sidney Dillon f. L. Ames,